Uttar Pradesh's Economic Survey for 2025–26 has unveiled impressive growth figures, indicating a significant transformation in the state's economic landscape. The report highlights that the state's economy expanded at a compound annual growth rate (CAGR) of 10.8 per cent over the past eight years. The Gross State Domestic Product (GSDP) at current prices surged from Rs. 13.30 lakh crore in the fiscal year 2016–17 to Rs. 30.25 lakh crore in 2024–25.
Tax Revenue Doubles
A key indicator of economic vitality, the state's own tax revenue, witnessed a remarkable increase from Rs. 0.86 lakh crore in 2016–17 to Rs. 2.09 lakh crore in 2024–25, more than doubling in eight years. This reflects enhanced economic activity and improved tax compliance.
Shedding the BIMARU Tag
Uttar Pradesh, long labeled as part of the BIMARU group (Bihar, Madhya Pradesh, Rajasthan, Uttar Pradesh) due to low economic growth, has shown a steady rise in its contribution to the national economy. The state's share increased from 8.6 per cent in 2016–17 to about 9.1 per cent in 2024–25, signaling its growing economic significance.
Future Projections
The GSDP for FY 2026–27 is projected to reach Rs. 39.8 lakh crore, marking a 28 per cent growth over the revised estimate for FY 2025–26. This ambitious target underscores the state's potential for continued expansion.
Regional Growth and Infrastructure
Economic growth has been concentrated in the western belt, particularly around Noida and Agra, and is now spreading into the Purvanchal region. A notable infrastructure milestone is the Gorakhpur Link Expressway, a 91.35 km corridor inaugurated in June 2025. This expressway connects Gorakhpur to the national expressway grid for the first time. In 2017, the state had only three functional expressways: the Yamuna Expressway and the Noida-Greater Noida Expressway.
Four Levers of Transformation
The economic shift has been driven by four key factors: investment, enterprise, governance, and public finance.
Investment
At the Global Investor Summit in February 2023, the government received investment proposals worth Rs. 33.5 lakh crore, reflecting strong investor confidence.
Enterprise and Exports
State exports have grown from Rs. 84,000 crore in 2017 to Rs. 1.86 lakh crore. Uttar Pradesh is the only state in the country where exports are made from all 75 districts, each specializing in district-specific products. The highest exports come from Gautam Buddha Nagar, which recorded exports worth Rs. 94.3 thousand crore in 2024–25, accounting for 50.7 per cent of the state's total exports.
Governance
Uttar Pradesh has improved its governance metrics. According to the State Startup Ecosystem Ranking (5th edition) published by the Department for Promotion of Industry and Internal Trade (DPIIT) in January 2026, the state was included in the Top Performer Category ‘A-1’, highlighting its supportive environment for startups.
Public Finance
Tax revenues have more than doubled in eight years, indicating robust fiscal health and effective tax administration.
